BlackBerry (BBRY) Q2 Release Contains No Bombshells, Thinks Analyst
- Top 10 News for 07/21 - 07/25: In the Thick of Earnings; M&A Ramps Up; Where's the Homes?
- Goldman's GOAL Cuts Equities to Neutral, Corporate Credit to Underweight
- Amazon.com, Inc. (AMZN) Posts Q2 Loss of 24c/Share
- IBM (IBM) Rejects Offer for Chip-Making Unit - Bloomberg
- Containerboard Stocks Could Revalue Up to 100% Under MLP Structures, Perry Capital Says (IP) (KS) (RKT)
"The key question is whether there are issues that could cause a snag in Fairfax’s due diligence, in our view. While the company’s MD&A filing may provide more color, based on the company's earnings, we do not believe there is," said Um.
"Although BBRY’s unencumbered by debt, we do note a ~$500MM reduction in cash and equivalents that is concerning. Given that BBRY plans to restructure and wants to assume ~$2B in leverage, we are of the belief that the company should sell certain of the assets it has (like parts of its $1.3B in buildings/leasehold improvements/other) to bolster its cash position. We believe that Fairfax being a sophisticated investor is likely cognizant of this issue and will address it appropriately to stem further erosion in the company’s liquidity," added the analyst.
Wells Fargo has a Market Perform rating on BlackBerry with a price target of $8 to $9.
For an analyst ratings summary and ratings history on BlackBerry (NASDAQ: BBRY) click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $7.95 yesterday, with a 52 week range of $7.75 to $17.22.
You May Also Be Interested In
- UPDATE: MKM Partners Downgrades Maxim Integrated Products (MXIM) to Neutral
- UPDATE: Barrington Research Starts 2U, Inc. (TWOU) at Outperform
- Silicon Labs (SLAB) PT, Estimates Trimmed at Needham & Company; 'Buy' Maintained
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesEarnings, Wells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!